Overview
Energy delivery charges include two components: transmission and distribution.
- Transmission charges cover the cost of moving electric energy from generating facilities through high-voltage transmission lines to distribution utility substation transformers.
- Distribution charges cover the cost of moving electric energy from these transformers through local, lower-voltage lines that carry electricity to the consumer’s meters.
Rate riders are added to transmission and distribution charges which create variations in average monthly charges year over year. Rate riders are used to reconcile expected costs with actual costs of operation.
Transmission charges
Transmission rates are approved and regulated by the Alberta Utilities Commission (AUC). The transmission charge on an electricity bill is based on how much electricity the consumer has used.
As shown in Figure 1, Alberta has seen an increase in transmission charges since 2004 due to the expansion of infrastructure. There have been a number of large transmission projects, which have led to an increase in costs being passed on to consumers. In 2025, monthly transmission charges paid by the average residential consumer with 600 kWh of consumption ranged from $23.93 (in ENMAX's service area) to $26.32 (in ATCO Electric's service area). Transmission charges constitute approximately 15% of a consumer’s total bill, on average.
Source: Compiled by the UCA based on data provided by the AUC and Alberta Electric System Operator (AESO).
Distribution charges
The AUC regulates distribution rates for Calgary (Enmax) and Edmonton (EPCOR) and for Fortis Alberta and ATCO Electric. Distribution rates for Cardston, Ponoka, Red Deer and Lethbridge are approved by local municipal governments and town councils. Rural Electrification Associations have boards of directors that approve distribution rates on behalf of members.
As shown in Figure 2, distribution costs vary with location and consumption. Distribution charges are higher for consumers in rural Alberta than for consumers in urban areas because of the low population density and longer distances between consumer sites. In 2025, monthly distribution charges paid by the average residential consumer with 600 kWh of consumption ranged from $31.55 (in EPCOR's service area) to $97.89 (in ATCO’s service area). Distribution charges constitute approximately 24% of a consumer’s total bill, on average.
Source: Compiled by the UCA based on data provided by the AUC and AESO.
